Question

Suppose you are interested in using regression analysis to estimate an MLB player's salary using the following independent variables: the player's position in the field. the player's current batting average, the player is an All-Star, the player's nationality, the player is on the New York Yankees, and the player has played in the Olympics. Which of the following independent variables are indicator (dummy variables? Select all that apply.
a. the player's position in the field
b. the player's current batting average
c. the player is an All-Star the player's nationality
d. the player is on the New York Yankees
e. the player has played in the Olympics
f. None of these

Answer 1

Answer:

the player's position in the field

the player's current batting average

the player is an All-Star

the player is on the New York Yankess

Step-by-step explanation:

Let's see each option if they are correct or not, and why.

a. the player's position in the field

Yes. Shortstops and center fielders, for example, tend to be paid more than first baseman.

b. the player's current batting average

Batting average is a measure of performance. High performance leads to good salary. So yes, this is correct.

c. the player is an All-Star

All-Stars have considerable higher leverage to negotiate their contracts. So yes, this is correct

d.the player's nationality

Nationality does not have any relation to salary, so this is not correct.

e. the player is on the New York Yankees

The Yankees usually has the highest payroll, so it is correct.

f. the player has played in the Olympics

MLB players do not take part in the Olympics, since it happens in the midst of the season. So this option is not correct.